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Small-Cap Companies Turn to Bitcoin and Digital Assets for Fundraising and Growth

Strategic Insights

— 2 min read

Small-cap companies in the UK's London market are increasingly turning to Bitcoin and digital assets for fundraising and growth, as they seek to adapt to changing market conditions and capitalize on new opportunities. This week, several firms have made headlines by announcing deals with Bitcoin mining companies, digital asset treasuries, and convertible loan notes, marking a significant shift towards embracing cryptocurrency and blockchain technology.

Key Takeaways:

  • Union Jack Oil PLC is partnering with 360 Energy to channel natural gas from its West Newton field into Bitcoin mining, with a formal deal expected to be signed soon.
  • ECR Minerals PLC is adopting a digital asset treasury strategy, allowing up to half of its surplus cash and gold production proceeds to be allocated to Bitcoin, seeing it as a hedge and store of value.
  • Satsuma Technology PLC has secured a record £163.6mn in a convertible loan note, settling much of the raise in Bitcoin, an unprecedented step for a London-listed firm.
  • The Smarter Web Company's Bitcoin-denominated convertible bond attracted $21mn in backing, blending traditional funding with cryptocurrency exposure.
  • The AIM small-cap market regained its mojo this week, posting a 0.6% gain to 761.34, marginally outperforming the FTSE 100.
  • Trellus Health PLC surged 133% on Friday, the stand-out performer, after no news, with some speculating it may be due to an update on its collaboration with Johnson & Johnson.
  • SIMEC Atlantis Energy Ltd ended the week 76% higher, following the financial close of its AW1 battery storage project at Uskmouth, expected to deliver annual revenues of around £13mn and average earnings of £9mn over its first five years.

Statistics:

  • £163.6mn: The record amount secured by Satsuma Technology PLC in convertible loan notes, settled partly in Bitcoin.
  • £9.6mn: The amount raised by Tasty PLC to recapitalise the business, upgrade its portfolio, and implement new technology.
  • 133%: The surge in Trellus Health PLC's shares on Friday, with some speculating it may be related to an update on its collaboration with Johnson & Johnson.
  • 76%: The week-on-week gain in SIMEC Atlantis Energy Ltd, driven by the financial close of its AW1 battery storage project.
  • 70%: The week-on-week gain in Europa Oil & Gas (Holdings) Plc, driven by news of an outline deal with a major energy company to farm out an interest in the EG-08 offshore block in Equatorial Guinea.

Sources:

  • "Oil, gold and Bitcoin rarely appear in the same sentence. Yet this week, London's small-cap companies have made them unlikely bedfellows."
  • Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF)
  • ECR Minerals PLC (AIM:ECR)
  • Satsuma Technology PLC (LSE:SATS)
  • The Smarter Web Company (AQSE:SWC)
  • Trellus Health PLC (AIM:TRLS)
  • SIMEC Atlantis Energy Ltd (AIM:SAE, OTC:SMAYF)
  • Europa Oil & Gas (Holdings) Plc (AIM:EOG)

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